Southern Arc seeks IUP extension for East Elang property

By Romel S. Gurky

Canadian junior miner Southern Arch Minerals said on Tuesday that it would seek for another extension of its IUP exploration permit for the East Elang property on Indonesia?s Sumbawa Island.

The company said in a statement that the extension is needed to ensure that it would have enough time to properly conduct exploration activities at the property after the government of Indonesia extended in May the forestry moratorium for two years, which is now expected to expire in May 2017. Because of the moratorium, the company can?t conduct exploration activities at the concession.

Last year, Southern Arch obtained a one-year extension of the exploration IUP permit, extending the exploration tenure to end 2018.

?As a result of the moratorium extension, Southern Arc will likely request another extension to its IUP to ensure Southern Arc and Vale have adequate time to explore the property once the forestry moratorium is lifted,? Southern Arc said in a statement.

The East Elang Project is being advanced in a joint venture with Vale International SA. Pursuant to an option and joint venture agreement, Vale can earn a 75 percent interest in the property by funding exploration through to completion of a bankable feasibility study within an agreed-upon time frame. Phase 1 exploration would require a minimum of US$1,200,000 of exploration expenditures within one year from the date that Southern Arc receives a Pinjam Pakai permit from the Ministry of Forestry.

Editing by Reiner Simanjuntak